AI

Coatue Management Targets $1 Billion Fund to Fuel AI-Focused Startups Amid Investor Interest

05 November 2024

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Zaker Adham

Summary

Coatue Management, known for its tech-heavy investment strategy, is set to raise $1 billion to fund artificial intelligence (AI)-driven startups. This capital infusion aims to support emerging AI innovators as investor enthusiasm for advanced technologies grows. The fund will primarily draw from institutional investors, but certain high-net-worth individuals with brokerage ties to Raymond James and Associates may also gain access.

With approximately $50 billion in assets under management, Coatue has a strong history in venture capital, funding over 170 startups in 2021 alone. However, the firm scaled back its pace in the following years, backing only 81 companies in 2022 and about 30 in 2023. Nonetheless, 2024 has seen Coatue reengage in private tech investments, particularly in the AI sector, with notable investments in companies like Glean, Scale AI, and Skild AI. Founder Philippe Laffont has expressed keen interest in AI-powered humanoid robots, highlighting the firm’s future-focused vision for technology.